Harsh peace and hard times

The peace treaty with Germany—drawn up far too rapidly and without German participation, between January and May 1919—went into effect on June 28. Even as peace with Germany was declared, the British people, as well as members of the government, were beginning to realize that the punitive treaty, burdening Germany with the responsibility and much of the cost of the war, was a mistake. Accordingly, British foreign policy for much of the decade of the 1920s aimed at rehabilitating Germany and bringing it back into the family of nations. In general, this attempt was opposed by France and resulted in a rupture between Britain and its wartime ally, forcing France into a position of isolation that would have prodigious consequences for Europe and indeed for the rest of the world with the rise of Adolf Hitler in the early 1930s.

Lloyd George spent a great deal of time in the four postwar years of his administration on foreign affairs. As a consequence, issues within the United Kingdom, such as unemployment, poor housing, Irish separatism, and the revival of industry, were too frequently neglected. Many of the promises for reconstruction made in speeches and papers during the war were never carried out. The government, however, tried to diminish the habitual confrontation between newly powerful organized labour and industry. Unemploymentinsurance was extended to virtually all workers, and a serious attempt was made to begin a public housing program. Railroads were reorganized, and for three years after the war coal mines remained in public hands. This restructuring of industry, however, came to an end with the serious rise in unemployment that began in 1920 and culminated in 1921 in a full-scale industrial depression with nearly one-fourth of the labour force out of work. One of the factors in the depression was a disastrous coal strike in April 1921, caused in considerable measure by the collapse of world coal prices resulting from German coal reparations to France. The immediate effect of the economic depression was a demand by the Conservatives for government economy that the prime minister could not ignore.

Ireland and the return of the Conservatives

In 1919 revolutionary disorder broke out in the south of Ireland when the provisional government of Ireland, organized by the Sinn Féin party, began guerrilla military operations against the British administration. Through 1920 the British government attempted to put down violence with violence, while passing an act allowing Home Rule for both the south of Ireland and for Ulster. The six Protestant unionist counties of the north accepted Home Rule and in 1921 set up in Belfast an autonomous government. In the 26 counties of the south, Home Rule was defiantly rejected. By the spring of 1921, however, with the Belfast government in operation and with demands both in Britain and in the rest of the world that the fighting in Ireland come to an end, compromise became possible. In the summer a truce was arranged, and on December 6, 1921, after prolonged negotiations, the British government and the Irish rebels signed a so-called treaty allowing the establishment of what was, in effect, a dominion government in Dublin.

Lloyd George’s insistence that the Irish be granted the substance, if not the letter, of their demands, as well as the clearly declining popularity of the coalition government, caused general unhappiness, not among the Conservative leadership but among the members of the Conservative back bench in the House of Commons. Finally, in October 1922, when the proposal to join forces in a second coalition election was decisively rejected, largely by the Conservative rank and file, the Conservative Party withdrew from the coalition. Lloyd George resigned on October 20, and George V invited the Conservative leader, Andrew Bonar Law, to form a government. On November 15, 1922, the hastily established Conservative government won a solid victory in a general election. The decline of the Liberal Party was confirmed by the fact that the two wings of the party together returned only 116 members of Parliament compared with Labour’s 142.

1Active members as of December 2013, including 89 hereditary peers, 646 life peers, and 25 archbishops and bishops.

2Church of England “established” (protected by the state but not “official”); Church of Scotland “national” (exclusive jurisdiction in spiritual matters per Church of Scotland Act 1921); no established church in Northern Ireland or Wales.

Official name

United Kingdom of Great Britain and Northern Ireland

Form of government

constitutional monarchy with two legislative houses (House of Lords [7601]; House of Commons [650])

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